Governor Vetoes Tax Bills

At a public ceremony in the Capitol rotunda yesterday, Governor Lingle vetoed several taxation bills:

SB1111 SD1 HD1 CD1 – Increases the transient accommodation tax by 28 percent over the next two years, adding to the cost visitors and residents pay when staying at hotels, time-shares, and bed & breakfast lodgings. The tax increase would raise the cost of visiting Hawai‘i and discourage both leisure and business travelers from coming to the islands and further destabilize Hawai‘i’s already weakened visitor industry.

HB1741 HD1 SD1 CD1 – Increases by up to 257 percent the conveyance tax home buyers, businesses, real estate developers, charities, non-profit organizations and other purchasers of all residential, commercial, industrial and agricultural real estate must pay for transactions over $2 million. It would also adversely impact affordable housing projects and non-profit organizations, including churches, schools, and youth organizations.

HB1747 HD1 SD1 CD1 – Increases the personal income tax rate on almost 37,000 Hawai‘i income tax filers, sole proprietors and small businesses (S-corporations and partnerships) that file their business income as personal income. There are over 27,000 S-corporations, partnerships and sole proprietorship in Hawai‘i, which includes approximately 6,000 sole proprietors.

Visit the Governor's website at http://hawaii.gov/gov to view the veto messages and the veto ceremony.

At today's final legislative session, the House and Senate plan to override Governor Lingle's vetoes. Read the Honolulu Advertiser article here.